The Contagion of Probability Pt 2

We noted in May that it was not prices that we needed to watch for contagion, but probabilities. It's not 10 year Italy yields almost doubling that's the issue; nor is it the level of the VIX. No, it's the fact that Italian bonds were infected with the probability of a profligate government, and that the VIX got to a point where calm was projected to endure in all scenarios . . .

Login or Sign up for a Premium account to read the full article.